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Thread: Christian Lacroix goes bust - Sweetie darling, say it isn't so

  1. #1
    Elite Member witchcurlgirl's Avatar
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    Default Christian Lacroix goes bust - Sweetie darling, say it isn't so

    Christian Lacroix goes bust as taste for luxury dries up


    Christian Lacroix, the French fashion house famous for its expensive haute couture, has declared insolvency after falling foul of the global recession.

    The collapse of Lacroix, which is owned by the Falic Group, a duty free retailer, and employs 125 people, has been attributed to the effects of the global downturn and consumers’ reluctance to spend money on luxury goods.

    The fashion house, which was a favourite of characters in the British television comedy Absolutely Fabulous because of its extravagant and expensive designs, said that it had “filed a voluntary petition with the Tribunal de Commerce de Paris to put itself under the protection of the courts" and that it intended to maintain its business operations throughout proceedings.

    The company was bought by the Falic in 2005 and subsequently launched an ambitious restructuring plan.

    Nicolas Topiol, chief executive of Christian Lacroix, said that the Falic Group's investment in the fashion company had been disrupted by the economic crisis, which had led to a downturn in the luxury goods market and which "considerably hurt our revenues".

    With the onset of the recession, major retailers had begun to stop buying new Lacroix merchandise and in April, Neiman Marcus Group and Saks reduced their orders for Lacroix products.

    The high-fashion brand was launched by Christian Lacroix 22 years ago and has become well-known for its colourful gypsy-themed clothes.

    Mr Lacroix soon expanded out into jewellery, handbags and shoes and opened boutiques in London, Geneva and Japan and he became famous for his high concept approach to fashion, which in 1994 culminated in a collection inspired by folklore, fables and old culture. He has also experimented in children's wear and perfume.

    However, the business has never been a financial success. The Lacroix fashion house has never turned a profit and last year reported a €10 million loss.

    Sales of the Lacroix women's summer collection are also down 35 per cent this year after major clients decided to reduce spending on luxury fashions.


    Christian Lacroix goes bust as taste for luxury dries up - Times Online
    Last edited by witchcurlgirl; May 28th, 2009 at 01:23 PM. Reason: spelling
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    Elite Member Daphne's Avatar
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    I saw some Lacroix stuff on Gilt Groupe a few days ago heavily discounted.

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    Elite Member sputnik's Avatar
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    aww, poor lacroix.
    though it's not the first time he's on the brink of bankrupcy. i think he almost went under a few years ago. must have been saved by this falic () group.
    I'm open to everything. When you start to criticise the times you live in, your time is over. - Karl Lagerfeld

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    Elite Member witchcurlgirl's Avatar
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    I've been in fashion for a long time, and most couture or designer houses don't turn a profit on clothing. You need licensing deals to make money. Perfume, sunglasses, home goods, etc.
    It's no longer a dog whistle, it's a fucking trombone


    All of God's children are not beautiful. Most of God's children are, in fact, barely presentable.


    If I wanted the government in my womb I'd fuck a Senator

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    Elite Member Beeyotch's Avatar
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    I had no idea that couture houses don't make money. They're such huge names in the fashion world, I'm completely surprised.

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    Elite Member witchcurlgirl's Avatar
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    ^ they can make money, but usually not on the clothing. the cost of making it is expensive, and the client base is very small.

    Bags, shoes, underwear, perfume, jewelry, watches, cosmetics, home goods all turn big profits...When a house uses it's name on those items, it can make enormous profits.

    Diffusion lines as well....like Ralph Lauren's example of Lauren, Polo, Chaps(which isn't even made by RL, but by Warnaco & Van Heusen), etc. Large customer base and a better profit margin.

    But couture is very expensive to make, the profit margin isn't usually high enough to support a large house.
    Last edited by witchcurlgirl; June 5th, 2009 at 08:12 AM.
    It's no longer a dog whistle, it's a fucking trombone


    All of God's children are not beautiful. Most of God's children are, in fact, barely presentable.


    If I wanted the government in my womb I'd fuck a Senator

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    Elite Member sputnik's Avatar
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    there are only a few houses left that make haute couture, lacroix was one of them. haute couture is made to order for a specific client and one piece can take up to hundreds of hours of work by skilled dressmakers and artisans.

    lacroix also makes prêt-à-porter but even that isn't profitable. i think he's never understood how to make money. he's a wonderful designer and couturier but his clothing aren't exactly practical and mainstream enough to sell in large quantities. and he never sold out and made a more accessible collection that would appeal to a larger customer base.
    I'm open to everything. When you start to criticise the times you live in, your time is over. - Karl Lagerfeld

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    Elite Member witchcurlgirl's Avatar
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    ^ he did have two diffusion lines at one time. Bazar and Lacroix Jeans. when Falic bought his house from LVMH, they terminated those lines.
    It's no longer a dog whistle, it's a fucking trombone


    All of God's children are not beautiful. Most of God's children are, in fact, barely presentable.


    If I wanted the government in my womb I'd fuck a Senator

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    Elite Member sputnik's Avatar
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    ^^
    oh yeah, i'd forgotten about those. bazar was quite nice actually. never paid attention to the jeans line.
    I'm open to everything. When you start to criticise the times you live in, your time is over. - Karl Lagerfeld

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